Tuesday, March 18, 2014
Continuing higher today as the Dow gained 89 points on light volume. The advance/declines were 3 to 1 positive. The summation index should turn back up after todays market action. I's like to say that we are going to new all time highs but I am not sure. The volume so far on the upswing has been light. That isn't a good sign. But who knows? If there aren't any sellers left, the only way to go is up. We'll get the Fed announcement tomorrow and that should be a price mover. Technically the short term indicators for the stock indices have turned around and are moving higher. That's a plus for the bullish cause. GE was up 1/4 but the volume was very light. Nowhere near new recovery highs for this issue. Gold continued lower on the lack of Ukraine events. The yellow futures were down about $14. The US dollar finished the day little changed. The XAU was off 7/8. ABX, GG and NEM all had fractional losses on light volume. Expecting some pull back here for the gold shares and we're getting it. I'm looking out to the May calls for ABX. If and when we get through the overhead resistance for this stock at $21.50, it has plenty of room to run. I'm not sure when this will happen but when it does, I want to be there. Mentally I'm feeling OK. Sure would have liked to have the chance yesterday to get the March OEX calls. But at least the technical signal there was valid and there will be other opportunities down the road with the same indicators. Simply waiting on the Fed at this point. Gold and the US dollar also have the potential to move off of the Fed statement as well. The Ukraine situation seems to not be a concern for the stock market right now. That is one of the dilemmas of the headline driven environment. The stories can evaporate rather quickly. Three days left in the March option cycle. We'll see what tomorrow and the Fed brings.
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